Comments: Many Federal Reserve officials urged a few people to give a timeline hint to

Source: Bloomberg

Author: Reade Pickert

Many Federal Reserve officials emphasized that before reducing interest rates, they need to see more evidence of inflation and cooling, and the two decision makers put forward their own opinions on possible action time.

Adriana Kugler, a Federal Reserve director, said that if economic development is expected, the interest rate cut for "later this year" may be a suitable move.San Louis Federal Reserve Governor Alberto Musalem said in his first important policy speech since taking office that it may need to observe several quarters to obtain data to support interest rate cuts.

New York Federal Reserve Chief John Williams and Richmond Federal Reserve President Thomas Barkin did not provide the specific time framework of interest rate cuts, but all officials emphasized the important role of economic data in guidance policies.

After the price pressure of prices in the second half of 2023, the inflation rate suddenly rising in the first quarter of this year surprised the Fed.Although the recent data is encouraged, the decision makers still maintain cautious attitude.Boston Fed Chief Susan Collins reiterated on Tuesday that it should not be over -responded to an optimistic news of one or two months.

This kind of cautious attitude is obvious in the predictions of the dot matches released last week. At that time, four officials predicted that the interest rates would not be cut in 2024.

Musalem, president of San Louis Fed, said, "It is necessary to maintain continuous inflation and cooling, slow demand, and increase in supply during a period of time.Only by appearing. "

The recent series of economic reports shows that the economy is halfway. Although the employment has grown strongly, consumer expenditure has been suppressed, and inflation has been cooled down after the accident accelerated in the first quarter.According to the data released on Tuesday, the US retail sales in May have almost no increase in growth, and the data of the previous months have also been repaired.

"I think the current monetary policy position is tight enough, which helps the economy to cool down and return the inflation rate to 2%. At the same time, it will not cause economic activities to shrink sharply or the labor market worsen significantly," Kugler said.